Credit Repair Hacker

1. What Causes Bad Credit? There are many factors that cause bad credit. Some people may not realize the impact the certain decisions will have on their credit until it is too late. It is HIGHLY RECOMMENDED that you thoroughly read this article and place great importance on increasing your credit score/fico score because it will save you more money than any job promotion or side job that you could work at. For More information on how much bad credit can cost you, click here. For starters the reasons your credit score will go down are: Inquiries, Late Payments, Charge Offs, Repossessions, Foreclosure, Judgments, and Bankruptcy. Inquiries - How they affect your credit Inquiries: Inquiries are caused by companies looking at your credit report for the possibility of issuing you credit. This may be from a credit card company, a mortgage company, or a utility company. Some companies don't place inquiries on your report, but it is rare. The way in which inquiries hurt your credit is that it take 30-60 days for credit to show up on a report, sometimes longer. A credit issuing company is very sceptical of someone who has applied to a lot of credit recently because they don't know what you were accepted for or not. For example, say you applied for 5 credit cards all at once and got all of them. You then have 5 new credit cards which haven't shown up on your credit report, yet these inquires have. So rather than risking giving another credit card to a customer and risking abuse, they would deny you for excessive inquires. Solution: Inquiries usually fall off within 6-12 months and do not have a lasting effect on your credit. They are not negative marks, but more of an instant guide for the creditors to protect themselves from fraud. Late Payments - How they affect your credit Late Payments: Probably the most common of all bad marks on your credit, and the gateway to the serious credit marks, late payments are exactly what they say they are. It tells the credit agencies that you weren't able to pay your bills on time or forgot to send the payment in. Either way it tells the agency that you're a higher risk customer. This will cause your credit score to move down and will cost you more on your future home and car loans. The types of late payments are 30 days late, 60 days late, 90 days late and 120 days late. The later you are, the more it damages your credit. Late payments stay on your credit report for 7 years from last date reported. Solution: Pay your bills on time! Do whatever it takes to pay any bill that has your credit tied to it on time. If you have late payments and would like to get the resolved, you make look into signing up for a credit repair service. These services challenge the bad listings and usually get them removed within 3 to 18 months, depending upon severity.

2. Charge Offs - What are Charge Offs? Charge Offs: These are interesting methods creditors use to save on taxes through decreasing their receivables. A charge off is where you haven't paid your bill for a long time and it is apparent that you're not going to pay it at all, or are unwilling to pay it. The company then decides to take this prospective income off the books and write it off as a loss to bad debt. When they do this it creates a new mark on your credit report (thus starting the 7 year time frame all over). These marks stay on your credit for 7 years from last date of activity. This means, that if the charge off is updated for any reason, the time gets reset and it is 7 years from that date. Solution: If you are having trouble paying your bills, and have old outstanding debts, consider looking into a debt settlement or debt consolidation company. Repossession - Car Repossessions Repossession: Simply put, if you don't pay the bill on your car the bank is going to come and pick the car up whether you like it or not. It is a onetime occurrence (per car) and usually leaves you with a deficiency after the bank has sold the car. For example, say you bought a brand new $40,000 BMW on a $10,000 a year salary. You quickly realized you couldn't pay for the car so you stopped making the $700 monthly payment. The bank sees this and decides they need to get the car back and try and recoup some money from it, so they repossess it in the middle of the night. Three weeks later the bank is able to resell the car for $30,000, leaving a $10,000 "deficiency" between the amount you owed and the amount they sold it for. You are responsible for the $10,000 deficiency, and until you pay it back it will stay on your credit report (unless the bank doesn't renew the listing, which is rare). Repossessions can happen with other items as well, including but not limited to: furniture, appliances, machinery, business equipment, motorcycles, snowmobiles, etc. Solution: If you've bought a car that you soon realized you couldn't afford, the first step would be to try and sell the car on your own. Banks are terrible at selling cars and often sell them for much less than you could sell it for. If you already have a repossession on your credit report with a deficiency, then try to save a little bit of money and talk to the bank about settling the debt you owe for a lesser amount. If the bank is unwilling to settle, talk to a debt settlement company or a lawyer about what steps they could assist you with. Usually you can settle old debt for 10-40% of what you owe. Foreclosure & Foreclosure Prevention Foreclosure: Foreclosure is similar to repossession except you are evicted from your home if you do not pay. Usually this time frame is longer than the repossession time frame. The title automatically switches over to the note holder (regardless of what you owe on the house). This will stay on your credit report for 7 years from last date of activity. It is very important

3. to avoid foreclosure as this is large determinant as to whether future lenders will lend you money for a home in the future. Solution: If you have too much house for what you can afford, attempt to sell the house. If selling the house isn't available, they you might consider a foreclosure alternative or foreclosure prevention program, in which they negotiate the foreclosure and payments to give you some breathing room. If you are in too much house to begin with, this only delays the problem. If you already have gone through foreclosure and you'd like assistance on cleaning up your credit, use Sky Blue Credit Repair. You can read the full comprehensive review by Credit Repair Hacker. Judgements - What is a Judgement and how does it affect your credit? Judgements: A judgement could stem from any of the above problems. Essentially, if a creditor is having trouble getting money from you, they'll try to take you to court and "force" the money out of you through our tried and true legal system. This may result in garnishment of your wages. Garnishment results in a court order in which your employer is required to take out a certain amount or your paycheck each payroll period and send it to your creditor. Solution: If you have old debts that are getting garnished, there isn't much you can do. Debt settlement companies usually can't touch judgements because it takes quite a bit of time and effort. If you do have judgements, then you should consider trying to negotiate directly with the company for a lower settlement amount, and saving up some money to make the settlement. If there is no way you can afford to live with the garnishment, and the debt is substantial, you may want to consider looking into bankruptcy. If you have Judgements on your credit you'd do well to contact Sky Blue Credit Repair and have them work on your case. They have very low monthly fees and a very good record. Bankruptcy - How Bankruptcy Affects your Credit Bankruptcy: Typically Bankruptcy is a last resort solution to financial woes. If you can't see any feasible way out of the debt you have accumulated, bankruptcy is a way to wipe the slate clean (of debt, not credit) and start over. If you've already gone through bankruptcy and are trying to remove the bankruptcy from your credit report, go here for assistance on getting it removed.